An Effect of Japan's Export Restrictions Against Korea
Japanese semiconductor material companies are increasing their production volumes in South Korea in a bid to avoid the Japanese government’s export restrictions against South Korea with a global chip shortage ongoing.
For instance, TOK recently expanded its facilities in Incheon City to double its local photoresist production capacity as compared with 2018. TOK’s share in the global market is approximately 25 percent, it is the largest company in the market, and its clients include Samsung Electronics.
In the meantime, Daikin Industries, which has supplied semiconductor manufacturing gases to SK Hynix, is planning to set up a joint venture with a South Korean semiconductor manufacturing equipment supplier and build a plant in South Korea at an investment of four billion yen. Until now, the gases have been supplied from Japan and China.
In addition, Showa Denko Materials is planning to invest 20 billion yen until 2023 in order to produce more silicon wafer polishers and wiring board materials in South Korea and Taiwan.
According to industry sources, Samsung Electronics and TSMC recently initiated large-scale investment projects with the global semiconductor material demand on the increase and Japanese companies are heading to South Korea in order to avoid the restrictions. “In South Korea, we do not have to obtain a special approval from the Ministry of Economy, Trade and Industry,” one of the companies said, adding, “The importance of local production is continuing to increase along with the supply chain risks related to the United States, China and Japan.”